The paper "Accounting Policies and Procedures Followed by J Sainsbury Plc and Tesco Plc" compares the financial ratios relating to fixed assets; operating profit; Property, Plant & Equipment and Provision; liquidity, profitability, gearing, and investment of famous Shop online compared to its rival.
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Current and quick ratios of J Sainsbury Plc has been compared to its rival Tesco Plc have been calculated under the liquidity head. For profitability, ratios relating to gross-profit margin and net profit margin have been prepared. Debt-equity ratio has been computed to highlight the gearing position. Return on equity and return on asset have been computed under investment. The ratios relating to the years 2009 and 2008 have been computed to highlight the trend in the direction of the ratios. A comparison with the industry has been done to highlight the position of the company in the industry. In the next part the purpose and nature of the financial statements has been discussed. After this the role of the audit committee in monitoring internal controls and practices has been discussed. This is followed by a discussion on the nature and purpose of Independent Auditor’s Report. Finally the internal auditor’s opinion and Statement on Corporate Governance with respect to internal audit and internal control has been briefly discussed.
The financial statements of the company give summarized information about the financial performance of the company in the respective year. These are prepared as per accounting concepts and conventions. Ratios are computed using the information presented in the annual reports. These ratios are then compared with the previous years to identify any improvements or deteriorations. This can also be used for inter- industry comparison.
Analysis of accounting conventions in Sainsbury The financial statements of the company have been prepared as per International Financial Reporting Standards (IFRS).
Basis of preparation- The financial data presented in the financial statements are in terms of sterling and have been rounded off to the closest million. Other than derivatives, “available for sale” financial assets and investment properties, which have been measured at fair value, all other items in the financial statements have been reported under “historical cost conventions”.
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...? Detailed Proposal The paper will provide a comparison of financial analysis of two major retailer companies in UK ly Sainsburyplc and TescoPlc. Both these companiers are the leading food retailers in United Kingdom and they are the well known public listed companies in UK. The paper will highlight the Key features and the current strategies directed by the companies followed by the Calculation of financial ratios for each company, and Compare with earlier years, that allow to judge the financial performance and position for the company, and to interpret if the company's assessment of its own performance as shown in the Financial Highlights and...
...with further areas of the trade for funds. Each year they drive, charge and carbon diminutions attained are dignified over and done with a project venture review. And by undertaking this procedure, the Investment Board members have soreness in the program. Ultimately and mutually income and carbon goods will be encountered. Meanwhile the 2005 /06 their savings in Energy Reduction in their hypermarket domain have conveyed an utter energy lessening of 11.1 % at the same time as mounting their space by over 30 % (McAlexander and Eric, 2008.). Competitors It is worthwhile to evaluate the competitors of the JSainsbury and their major competitors are the Tesco and ASDA. The...
...Individual report - Strategic Planning (Total word count: 1070) Introduction: The individual report is presented on the leading business conglomerateJ. SainsburyPLC. J. SainsburyPLC with the employees strength of 1.53 lakh has spread its operations across wide range of activities (Sainsbury, 2006e). It mainly consists of supermarkets, food retail segment, online trading and financial services. This report consists of brief summary of strategic planning process adopted by the organization with emphasis on the environmental analysis. One of the primary requirement of any strategic planning process is a detailed environmental analysis of business environment (Farjoun, 2002). This activity would provide adequate information... influences could...
...Accounting and Finance SainsburyPlc, what kind of finance the company might have raised You are required to attach just one copy of a balance Sheet as evidence. It is also suggested that you make use of important ratios based on capital structure of the company and make comments.
Table 1 SainsburyPlc. Capital Structure
Called up share capital
Share premium account
(Source: Balance sheet of SainsburyPlc for 2007...
...in nearly every store there is a pharmacist to offer guidance and help on healthcare matters.
JSainsburyPlc is a leading UK food retailer with interests in financial services. It consists of Sainsbury's Supermarkets, Sainsbury's Local, Bells Stores, Jacksons Stores and JB Beaumont, Sainsbury's to You and Sainsbury's Bank. It employs 153,000 people A large Sainsbury's Supermarket offers around 30,000 products, 50% of these are Sainsbury's own brand including fresh produce. In addition to a wide range of quality food and grocery products, many stores offer delicatessen, meat and fish...
...for investment were Morrisons and JSainsbury. Both the companies have been making profits and paying dividends for over last 10 years. Different trends and ratio analysis have been used to compare the two options which are detailed as follows:
Short term liquidity
Accounts receivables turnover rate
Inventory turnover rate
Although short term liquidity of Sainsbury is lesser than Morrisons, it could be justified by the fact that the company has more working capital available as compared to Morrisons. This proves the...
...seventeen percent of the supermarket sector (Martin and Hetrick, 2006, p. 222). John James Sainsbury established it in 1869 as a shop in London and it grew to become the biggest retailer of groceries in 1922 while pioneering the self-service retail approach in the UK and having its heydays in the eighties (McLoughlin and Aaker, 2010, p. 129). However, Tesco overtook the company in 1995 as the market leader, with Asda becoming the second biggest in 2003, therefore relegating Sainsbury to third. JSainsburyPLC, which is a holding company, is divided into three divisions that include supermarkets, convenience stores and the...
...or yield to call options (Choudhry, M. 2001. p.422 – 423)
Kd (Cost of preference capital ) = R / P
R = rate of dividend
P = net proceeds
JSainsburyplc has not issued preference shares to its investors.
Cost of Debt
Cost of debt is the cost related to the amount of interest paid by the company on current outstanding debts. This includes all types of interest payments on revolving charge accounts. In general cost of debt capital is the amount of interest paid on bond options, bank loans and other similar revenue transactions. The cost of debt is of significance for companies of all size for many reasons.
At the outset, it is in the best interest of the company to...
...for the industry of food and allied items as it is one of the essential elements for living and people have to purchase it. Yet, the company should be in line with the technological changes as the threat in this regard, especially in the distribution channel looms large with constant changes. The internal threat of the industry with many of the big retail chains catering to the same target market is also a major threat.
Rivalry among the competitors – The industry, in which JSainsburyPlc caters, is highly competitive. The major competitors include the big names of Tesco, Asda and Morrison. The company has to bank upon its core competencies and resort to continuous...
...Advertising & Promotions Introduction: JSainsburyPLC is one of the most well known retail stores in London. It is one of the oldest retail storesin UK. Sainsbury was founded in 1869 with one store in a Drury Lane, one of the poorest areas in London. With the sustainable quality products and services, the Sainsbury has become one of the retail giants in London with more than 800 stores. Today the Sainsbury is having more than 500 supermarkets and more than 300 convenience stores (Company overview. Nd).
The following answers of the questions are very much vital for the branding of Sainsbury’s.
10 Pages(2500 words)Assignment
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